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Himachal

Posted at: Oct 12, 2018, 12:16 AM; last updated: Oct 12, 2018, 12:16 AM (IST)

Timeshare hotel firms under lens

Selling holiday packages to members, not paying taxes for providing hotel services
Timeshare hotel firms under lens
The Excise and Taxation Department on Wednesday slapped a recovery notice of Rs 1,22,44,515 on Club Mahindra, Dharamsala, and Rs 1,13,27,782 on Sterling Holidays Resort, Dharamsala. The companies have been accused of evading tax in Himachal.

Lalit Mohan

Tribune News Service

Dharamsala, October 11

Timesharing hotel companies are under scanner of the Excise and Taxation Department. Officials say the companies have set up hotels in the state but do not pay taxes to the government.

Rakesh Sharma, Assistant Commissioner of the department, said the companies like Club Mahindra and Sterling Hotels were selling holiday packages to customers. They paid taxes in the state where their head office was registered. However, nothing was being paid to Himachal where the hotels were located and services were being provided.

Though the matter requires legal scrutiny, the officials maintain that the companies owe tax worth crores to the state government.

The Excise and Taxation Department yesterday slapped a recovery notice of Rs 1,22,44,515 on Club Mahindra, Dharamsala, and Rs 1,13,27,782 on Sterling Holidays Resort, Dharamsala. The companies have been accused of evading tax in Himachal.

Sharma said, “We had calculated the tax evasion on account of services being provided in the state by two companies from July to September. It worked out to be about Rs 1.22 crore in case of Club Mahindra and Rs 1.13 crore in case of Sterling Holidays. We have calculated the tax as per minimum room rents fixed by the Tourism Department for the companies,” he said.

Vivek Mahajan, Assistant Commissioner of the Department, said the recovery notices on the firms were served today. It was a fact that such hotel companies were not paying any tax to the state. The matter was brought to the notice of the higher authorities in the department, he said.

Anurag, general manager of Sterling Holidays Resorts, said they had sent the notice to their corporate head office and it would look into the matter.

Bhanu Mishra, general manager of Club Mahindra, said he was yet to receive the notice. They followed rules and regulations.

Tax evasion

  • Tax charged from customers is paid at head office of companies
  • Hotels located in Himachal Pradesh do not pay any tax to state government
  • Recovery notice worth Rs 1.22 crore sent to Club Mahindra, Dharamsala and Rs 1.13 crore to Sterling Resorts. 
  • Tax due to state could run into crores
  • State where services provided not getting due share of tax from timeshare companies

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